1. Problem 3: On Jan 1, 2019, Rodney Inc. a US firm purchased 100% of the shares of Noodle Company operating in France. The financial statements of Noodle Company for the year ended December 31, 2019 are given below:

   Balance Sheet of Noodle Company on Dec 31, 2019

   Assets	Euros	Liabilities + OE	Euros
   Cash and Receivables	110,000	Accounts Payable	64,000
   Equipment	74,000	Common Stock	40,000
   		Retained Earnings	80,000
   Total	184,000	Total	184,000

   Income and Retained Earnings Statement

   For the year ended Dec 31, 2019

   Sales revenue	150,000
   Operating Exp. including depreciation of 6,000	60,000
   Net Income	90,000
   Add: Beg Bal of RE	20,000
   Less: dividends paid on Dec 31	30,000
   End Bal of RE	80,000

   Direct Exchange Rate:

   Jan 1, 2019 $1.10

   Avg for 2019 $1.15

   Dec 31, 2019 $1.20

   28. (Based on Problem 3) Under the current method, what amount of net income will be reported in US dollars?

   		$99,000
   		$99,000
   		$108,000
   		$103,500

3.5 points

QUESTION 23

1. (Based on Problem 3) Under the current rate method, the begining balance of retained earnings will be reported at what amount in US dollars?

   		$103,500
   		$22,000
   		$20,000
   		$90,500

3.5 points

QUESTION 24

1. (Based on Problem 4) Under the current method, what amount of ending retained earnings will be reported in US dollars?

   		$89,500
   		$90,500
   		$92,500
   		$108,000

3.5 points

QUESTION 25

1. (Based on Problem 3) Under the current method, what amount of total assets will be reported in US dollars?

   		$220,800
   		$202,400
   		$211,600
   		$193,200

3.5 points

QUESTION 26

1. (Based on Problem 3) Under the current rate method, what amount of common stock will be reported in US dollars?

   		$48,000
   		$40,000
   		$46,000
   		$44,000